Integrating Technology to Drive Business Performance

As organisations in Malaysia embark on a new transformative journey to strengthen welfare, enhance skills, and elevate the success of the workforce, HRM Asia’s CHRO Malaysia 2024 will set the stage for CHROs in the country to come together to discuss key trends and develop strategies that align their people with business goals to drive growth in 2024 and beyond.

The highly anticipated event will also feature presentations by leading thought leaders such as Karen Lee, Managing Director, South-East Asia & Oceania, BIPO. HRM Asia sat down with Karen to discuss how CHROs can leverage HR tech to drive transformation and help align key business and HR strategies across their organisations.

What do you see as the key employment trends in Malaysia and the challenges facing CHROs today?

Karen Lee: The Malaysian labour market is expected to remain stable in 2024. In the first quarter, we saw a 1.5% increase in the number of jobs, the highest since 2018. There are also accelerated efforts and a push by the local government to build a strong AI ecosystem, drive AI development in Malaysia and a growing commitment to AI advancement, innovation and progress in the country.

Changing workplace attitudes, with a shift towards flexible work arrangements, present opportunities for CHROs in Malaysia. Organisations need to future-proof their HR strategies to engage and manage today’s distributed workforce.

While digitalisation/digital transformation are crucial, there is also a growing emphasis on digital skills. Companies are looking for talents proficient in digital tools and technologies, raising the bar for upskilling and reskilling. This is where AI, technology, and data/predictive analytics play a key role in optimising workforce management.

How can CHROs better leverage on HR tech to drive transformation in their organisation – both from a business performance and talent management perspective?

Karen Lee: The impact of digital transformation on HR and the business is two-fold; transactional and transformational. From a transactional perspective, implementing HR software for tasks like payroll, leave management, benefits administration, and time tracking creates efficiencies. Automating these administrative tasks not only streamlines operations but also empowers HR teams to focus on strategic initiatives, aligning their efforts with overall business objectives.

At the transformational level, the benefits of HR technology are far-reaching. Incorporating technology, big data, and AI into talent management, learning and development, and performance management systems enhances workforce visibility and strengthens the alignment between business strategy and people management. This holistic approach ensures that HR not only supports but also drives the organisation’s strategic goals.

For organisations in Malaysia, what do they need to evaluate and understand to successfully align their business and HR strategies?

Karen Lee: To successfully align business and HR strategies, companies in Malaysia need to focus on several key areas:

1. Understand Business Goals: CHROs must have a clear understanding of the company’s long-term goals, strategies, and challenges.
2. Develop Talent Strategy: Align the talent strategy with business objectives to ensure the right skills are available for current and future needs.
3. Foster a Positive Culture: Promote a culture that supports strategic goals, tech adoption, collaboration, and employee engagement and retention.
4. Measure Impact: Establish clear metrics to evaluate the effectiveness of HR initiatives on business outcomes such as productivity, engagement, and retention.

By prioritising these areas, organisations can ensure their HR practices are agile, adaptable to market changes, and aligned with overall business goals.

First published in HRM Asia on 27 June 2024.